Equity markets in Toronto remained in decline but slightly narrowed earlier losses after utility stocks recovered.
China's "one-off depreciation" of its currency stoked fears over the health of the world's second-largest economy.
The S&P/TSX composite index fell 51.72 points – off its lows of the day --to close Tuesday at 14,414.67.
The Canadian dollar subtracted 0.62 cents to 76.29 cents U.S.
Base metals went south Tuesday as First Quantum Minerals got bruised 83 cents, or 7.8%, to $9.75, while Capstone Mining suffered a loss of seven cents, or 8.3%, to 77 cents.
Telecoms also went downhill on the day, as Manitoba Telecom Services lost 49 cents, or 1.7%, to $28.56, and Rogers Communications fell 46 cents, or 1%, to $44.38.
Energy stocks also took a hit, as Lightstream Resources slid five cents, or 8.3%, to 55 cents, and Baytex Energy sank 93 cents, or 7.9%, to $10.80.
Gold showed promise, moving upward as Argonaut Gold skyrocketed 15 cents, or 11.3%, to $1.48, while Torex Gold Resources climbed 11 cents, or 9.3%, to $1.29.
As has been the case the past few consecutive days, Bombardier was the most actively traded stock, easing six cents, or 3.8%, to $1.51, on 6.5 million shares.
On the economic front, Canada Mortgage and Housing Corporation reported that the seasonally-adjusted annualized rate of housing starts fell to 193,032 in July from a downwardly-revised 202,338 units in June. Forecasters had expected 195,000 starts.
ON BAYSTREET
The TSX Venture backtracked 5.4 points to 577.53.
All but four of the 14 TSX subgroups lost ground Tuesday, with global base metals and their cousins among metals and mining each down 5%, and telecoms sliding 1%
The four gainers were led by gold, up 2.2%, utilities, up 0.7%, and consumer staples, inching up 0.1%.
ON WALLSTREET
U.S. stocks closed lower by about 1% on Tuesday after an unexpected move overnight by the People's Bank of China to depreciate the yuan by nearly 2%
The Dow Jones industrial average tumbled 212.33 points, or 1.2%, to close at 17,402.84,
The index snapped a seven-day losing streak on Monday with a 241-point gain.
The S&P 500 faltered 20.10 points to 2,084.08,
The NASDAQ index lost 65.01 points, or 1.3%, to 5,036.79.
Biotech stocks and Apple outweighed Google's 4% jump to pressure the NASDAQ down.
Apple plunged more than 5% and Caterpillar fell more than 2.5% to lead declines. Analysts cited concerns about the negative impact of a China economic slowdown on those two firms.
Before the opening bell, Towers Watson posted quarterly results that beat expectations on both the top and bottom line.
In other earnings news, Shake Shack posted results after the close Monday that beat on both the top and bottom line. The restaurant chain also raised its full-year guidance. The stock closed nearly 3% lower after an initial spike.
Kraft Heinz closed 1% lower after reporting a decline in sales at both its Kraft and Heinz divisions. Combined results for the recently merged firm were not reported.
Computer Sciences, Symantec, Cree and Cyber Ark Software will report after the bell.
On the data front, preliminary second quarter productivity was up at an annual rate of 1.3%, while unit labour costs were up 0.5%.
Wholesale sales rose 0.1% in June, the weakest since March of this year, while inventories topped expectations with a gain of 0.9%.
May's figure was revised lower to 0.6% from 0.8%.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.14% from Monday’s 2.23%. Treasury prices and yields move in opposite directions.
Oil prices slipped $1.51 a barrel to $43.45 U.S.
Gold prices added $3.80 to $1,107.90 U.S. an ounce.
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